Sharper Image Files for Bankruptcy

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San Francisco Sharper Image Corp. has filed for Chapter 11 bankruptcy protection, saying declining sales and three straight years of losses led to a shortage of liquidity.

The company filed for protection late Tuesday with the U.S. bankruptcy court in Wilmington, Del. Sharper Image said it had $251.5 million of assets and $199 million of debts as of Jan. 31, according to the filing. Cash on hand totaled about $700,000, the filing shows.

"Sharper Image is in a severe liquidity crisis," CFO Rebecca Roedell said in a separate filing.

She said the company has suffered from increased competition, narrowing margins, litigation, lower consumer and market confidence, tighter credit from suppliers, and poorly performing stores.